The Digital Markets Act: Recalibrating Competition, Power, and Fairness in the EU Digital Economy

1. Introduction

Digital markets have transformed the structure of economic power within the European Union. A small number of large online platforms increasingly function as indispensable intermediaries between businesses and consumers, shaping access to markets, data flows, and innovation pathways. Traditional EU competition law, while robust, has struggled to address the speed, scale, and systemic nature of these transformations through ex post enforcement alone.

The Digital Markets Act (DMA) represents a paradigm shift in EU competition and internal market law. Rather than relying exclusively on case-by-case antitrust investigations, the DMA introduces an ex ante regulatory framework targeting structural market power in the digital economy. Its objective is not to punish past misconduct, but to prevent unfair practices before they distort competition and entrench dominance.

This bulletin analyses the legal architecture of the DMA, its core obligations, enforcement model, and broader implications for EU economic governance and global digital regulation.

2. From Competition Law to Market Regulation

The DMA is legally grounded in the EU’s competence to harmonise the internal market. While it draws heavily on competition law concepts such as dominance and abuse, it deliberately operates outside the traditional antitrust framework. The rationale is that digital markets often tip rapidly, leaving competition law remedies too slow or too narrow to restore contestability.

Historically, Articles 101 and 102 TFEU have been the primary tools for addressing anti-competitive conduct. However, repeated investigations into large digital platforms revealed structural patterns of behaviour that could not be effectively addressed through isolated enforcement actions. The DMA responds by establishing a regulatory layer that applies automatically to designated undertakings.

Institutionally, the DMA reflects a strong centralisation of regulatory authority. The European Commission is entrusted with exclusive enforcement powers, limiting fragmentation and ensuring uniform application across the Union. This centralised model distinguishes the DMA from many other areas of EU economic regulation.

3. The Concept of the “Gatekeeper”

At the core of the DMA lies the concept of the “gatekeeper.” Gatekeepers are undertakings that provide core platform services and enjoy a durable and entrenched position connecting a large user base with a wide ecosystem of business users.

Designation as a gatekeeper is based on quantitative thresholds relating to turnover, market capitalisation, and user numbers, combined with qualitative assessment where necessary. This hybrid model seeks to ensure legal certainty while allowing flexibility to capture evolving market realities.

The legal significance of gatekeeper status is profound. Once designated, an undertaking becomes subject to a predefined set of obligations and prohibitions, regardless of whether its conduct would meet the threshold of abuse under traditional competition law. In this sense, the DMA institutionalises a presumption that certain forms of market power require continuous regulatory oversight.

4. Core Platform Services and Scope

The DMA applies to a defined list of core platform services, including online intermediation services, search engines, social networking services, video-sharing platforms, operating systems, cloud computing services, and online advertising services.

By focusing on these services, the DMA targets the infrastructural layers of the digital economy. These layers are not merely markets in themselves, but gateways through which other economic activities must pass. Control over such gateways enables practices that may not immediately harm consumers but gradually erode competition and innovation.

The scope of the DMA is deliberately broad yet closed-ended, reflecting a balance between regulatory precision and adaptability. The Commission retains the power to update the list of core platform services as digital markets evolve.

5. Obligations and Prohibitions

The DMA introduces a detailed catalogue of obligations and prohibitions designed to curb unfair practices and enhance contestability. These include requirements to allow interoperability, refrain from self-preferencing, ensure data portability, and provide fair access conditions to business users.

Unlike traditional competition remedies, these obligations apply automatically and uniformly. Gatekeepers are not permitted to justify non-compliance by invoking efficiency gains or consumer benefits, unless explicitly allowed under the Regulation. This marks a significant departure from the effects-based analysis central to EU antitrust law.

From a legal perspective, the DMA embodies a rule-based approach to market regulation. While this enhances predictability, it also raises questions about proportionality and flexibility, particularly in fast-moving technological environments.

6. Enforcement and Institutional Design

Enforcement of the DMA is entrusted exclusively to the European Commission, which is empowered to conduct investigations, impose fines, and adopt remedial measures. This centralised enforcement model aims to avoid inconsistent national approaches and forum shopping.

Sanctions under the DMA are substantial, reflecting the Regulation’s preventive logic. Repeated non-compliance may trigger additional remedies, including behavioural or structural measures. In extreme cases, this could extend to divestitures or operational separation.

Judicial oversight is ensured through review by the Court of Justice of the European Union, which plays a crucial role in shaping the interpretation of key concepts such as contestability, fairness, and proportionality.

7. Relationship with EU Competition Law

A central legal question surrounding the DMA concerns its interaction with existing competition law. The DMA explicitly states that it is without prejudice to Articles 101 and 102 TFEU. This means that gatekeepers may still be subject to antitrust investigations in parallel with DMA enforcement.

However, the coexistence of these regimes creates a layered enforcement landscape. The DMA addresses systemic risks and structural imbalances, while competition law retains its role in addressing specific anti-competitive conduct. Together, they form a complementary framework, though coordination challenges are inevitable.

This duality also raises broader constitutional questions about the evolution of EU competition law from a case-driven system toward a hybrid regulatory model.

8. Impact on Innovation and Market Dynamics

The DMA has sparked intense debate about its impact on innovation. Supporters argue that by lowering entry barriers and preventing exclusionary practices, the Regulation will foster innovation by smaller firms and startups. Critics warn that rigid obligations may reduce incentives for large platforms to invest and experiment.

Legally, the DMA reflects a recalibration of the EU’s approach to innovation policy. Rather than assuming that market concentration necessarily leads to innovation, the Regulation prioritises openness, fairness, and long-term contestability as drivers of sustainable growth.

This normative choice aligns with the EU’s broader digital strategy, which emphasises competitive markets, technological sovereignty, and user empowerment.

9. Extraterritorial Effects and Global Influence

Much like other landmark EU digital regulations, the DMA has significant extraterritorial implications. Many designated gatekeepers are headquartered outside the EU, yet their operations within the internal market bring them within the Regulation’s scope.

This global reach reinforces the EU’s role as a regulatory standard-setter. Third countries are increasingly examining the DMA as a potential model for addressing digital market power, even as tensions arise in international trade and regulatory cooperation.

The DMA thus contributes to the emergence of a global debate on how democratic legal systems should govern digital capitalism.

10. Conclusion

The Digital Markets Act represents a structural transformation in EU economic law. By shifting from reactive enforcement to proactive regulation, it redefines how market power is addressed in the digital age. Its gatekeeper-based model, rule-driven obligations, and centralised enforcement architecture signal a decisive move toward regulatory intervention in markets deemed systemically important.

For legal practitioners, businesses, and policymakers, the DMA is more than a competition instrument. It is a constitutional statement about fairness, openness, and the limits of private power in the digital economy. Its long-term success will depend on careful enforcement, judicial interpretation, and the EU’s ability to adapt the framework to rapidly evolving technological realities.